3. HRSR 05-16-2005 - Laserfiche WebLink

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more interest in the organization, any corporate officer or director, and any stockholder having a ten percent (10%) or more interest in the organization. 9. NO JUNIOR FINANCING. Mortgagor will not, without the prior written consent of Mortgagee, grant or create any mortgage lien or consensual security interest on the Mortgaged Property other than the lien and security interest of this Mortgage, and the Permitted Encumbrances. 10. LIENS. Mortgagor will keep the Mortgaged Property free from all liens, other than the Permitted Encumbrances, whether superior or subordinate to this Mortgage, and upon written demand of Mortgagee, will promptly pay and procure the release of any lien, whether arising prior or subsequent to the execution of this Mortgage, which in any way may, in the judgment of Mortgagee, impair the security of this Mortgage; provided, however, that Mortgagor need not discharge any such lien so long as it shall agree to pay the obligation secured by such lien in a manner acceptable to Mortgagee, or shall in good faith contest such lien by appropriate legal proceedings effective to prevent the enforcement of the lien and the loss of any of the Mortgaged Property. 11. MORTGAGEE'S OPTION TO PAY. In the event of Mortgagor's failure to pay any sums provided for in this Mortgage, Mortgagee, at its option, may pay the same. Any funds accumulated under Section 7(b) hereof remaining after payment of the items therein specified shall be credited against subsequent monthly payments of the same items required thereunder; provided, however, that if any such item shall exceed the estimate therefor, or if Mortgagor shall fail to pay any other governmental or municipal charge, Mortgagor shall forthwith make good the deficiency, or pay the charge before the same becomes delinquent or subject to interest or penalties and in default thereof Mortgagee may pay the same. All sums paid by Mortgagee, and any sums that Mortgagee may advance to pay mortgage insurance premiums, shall be added to the Indebtedness, and shall bear interest from the date of payment by Mortgagee at the rate of seven percent (7%), and shall be due and payable on demand. In case of termination of a contract of mortgage insurance, if any, by prepayment of the Indebtedness in full or otherwise (except as provided herein), accumulations under Section 7(a) hereof not required to meet payments due under the contract of mortgage insurance shall be credited to Mortgagor. If the Mortgaged Property is sold under foreclosure, or is otherwise acquired by Mortgagee after default, any remaining balance of the accumulations under Section 7(b) hereof shall be applied in reduction of the Indebtedness as of the date of the commencement of the foreclosure proceedings, or as of the date the property is otherwise acquired, as the case may be, and accumulations under Section 7(a) hereof shall be likewise applied in reduction of the Indebtedness, unless needed to pay sums due under the contract of mortgage insurance.